industrial market report q1 2021
TRANSCRIPT
OUR NETWORK IS YOUR EDGE.All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should carefully verify each item of information contained herein.
PREPARED BY:
RD Trinidad Owner
Hoff & Leigh | 25 N Spruce Street, Suite 330 | Colorado Springs, CO 80905 | 719.630.2277 www.hoffleigh.com/colorado-springs
INDUSTRIAL MARKET REPORT Q1 2021Colorado Springs, CO
INDUSTRIAL MARKET REPORT
Market Key Statistics 1
Leasing 2
Rent 6
Construction 7
Under Construction Properties 8
Sales 10
Sales Past 12 Months 11
Economy 13
Market Submarkets 18
Supply & Demand Trends 20
Rent & Vacancy 22
Sale Trends 24
Colorado Springs Industrial
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Colorado Springs Industrial
OverviewColorado Springs Industrial
123 K (123 K) 5.1% 2.9%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth
Vacancies ticked up in the third quarter due to more than250,000 SF of negative absorption. Still, vacanciesremain historically tight and with minimal supply pressureexpected in the near term, the market is likely tostabilize.
Before the pandemic, net absorption clocked in at justunder 900,000 SF in 2019, the second-strongest in adecade. Both the vacancy and availability rates werelikewise at their lowest in at least 10-years.
Like the rest of the nation, rent growth is showing signsof deceleration in 2020. A slower pace of growth is in thecards in the near term as demand could falter given thecurrent economic environment.
Despite recent turmoil in the job market, investors remainbullish on the long-term outlook of the industrial sector inColorado Springs. More than $30 million worth of assetstraded in the third quarter, one of the best quarterlymarks in the past several years.
KEY INDICATORS
Market RentVacancy RateRBACurrent Quarter Availability Rate Net AbsorptionSF Deliveries SF Under
Construction
$9.052.4%19,266,891Logistics 4.1% 27,709 0 4,350,110
$9.425.2%10,179,611Specialized Industrial 7.1% 0 0 0
$10.3412.3%7,062,224Flex 15.9% (4,008) 0 0
$9.365.1%36,508,726Market 6.9% 23,701 0 4,350,110
ForecastAverage
HistoricalAverage12 MonthAnnual Trends Peak When Trough When
6.5%9.2%0.7%Vacancy Change (YOY) 13.8% 2009 Q3 4.5% 2020 Q1
1,672,792167,089(123 K)Net Absorption SF 1,289,034 2019 Q1 (1,126,120) 2009 Q3
1,842,765175,256123 KDeliveries SF 412,525 2007 Q4 0 2015 Q2
2.3%2.4%2.9%Rent Growth 5.8% 2019 Q1 -3.3% 2010 Q1
N/A$83.9M$140 MSales Volume $162M 2019 Q2 $32.5M 2009 Q4
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Colorado Springs IndustrialOVERVIEW
LeasingColorado Springs Industrial
NET ABSORPTION, NET DELIVERIES & VACANCY
VACANCY RATE
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Colorado Springs IndustrialLEASING
LeasingColorado Springs Industrial
AVAILABILITY RATE
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Colorado Springs IndustrialLEASING
LeasingColorado Springs Industrial
12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS
3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF
1st Qtr 2nd Qtr 4th Qtr 12 Month
Net Absorption SF
Southeast Ind 197,600 0 50,000 0 0 0 63,6624510 Edison Ave
Northwest Ind 151,363 0 0 0 0 0 53,0785825 Mark Dabling Blvd
Southwest Ind 164,582 108,744 55,838 0 0 0 33,892Cheyenne Industrial Park
North Ind 35,928 0 0 0 0 0 25,1764235 N Nevada Ave
North Ind 48,000 0 24,500 0 0 0 24,5003106 N Stone Ave
Northwest Ind 37,120 0 15,865 0 0 0 22,997Buckingham Office Warehouse
Greater CBD Ind 21,014 0 0 0 0 0 19,8592901 N El Paso St
Southeast Ind 18,000 0 18,000 0 0 0 18,0004949 Geiger Blvd
Southeast Ind 17,540 0 17,540 0 0 0 17,540Stonegate Business Park
Southeast Ind 17,500 0 17,500 0 0 0 17,5003390 Astrozon Blvd
Northwest Ind 62,370 0 0 0 0 0 14,430485 Elkton Dr
Northeast Ind 43,200 0 0 0 0 0 13,6081735 Jet Stream Dr
Northeast Ind 12,000 0 0 0 0 0 12,0008170 Sandy Ct
Southeast Ind 10,800 0 0 0 0 0 10,800555 Amelia St
Southeast Ind 10,000 0 0 0 0 0 10,000Claremont Business Park
Southeast Ind 10,480 0 0 0 0 0 10,000625 N Murray Blvd
Southeast Ind 10,506 0 0 0 0 0 9,928720 Seedling Ct
868,003 108,744 199,243 0 0 0 376,970Subtotal Primary Competitors
35,640,723 1,743,818 (78,600) 23,701 0 0 (476,659)Remaining Colorado Springs Market
36,508,726 1,852,562 120,643 23,701 0 0 (99,689)Total Colorado Springs Market
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Colorado Springs IndustrialLEASING
LeasingColorado Springs Industrial
TOP INDUSTRIAL LEASES PAST 12 MONTHS
Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr
4510 Edison Ave Southeast 50,000 OnTrac Colliers International Peak Commercial Prop…Q4 20
3505-3525 N Stone Ave North 33,104 Virtual Energy - Strata GroupQ3 20
2540 Zeppelin Rd Southeast 32,760 Lansing Building Products… Cushman & Wakefield CBREQ1 21
3170 N Century St * North 27,000 Allied Building Products Mohr Partners, Inc. NAI Highland Commerc…Q4 20
4235 N Nevada Ave North 26,000 Western Peak Logistics JLL;NAI Highland C… Hoff & Leigh Colorado…Q3 20
2660 Vickers Dr Northeast 26,000 Legend Family Sports - Olive Real Estate GroupQ2 20
2150 Garden of the Gods Rd Northwest 26,000 - - RE/MAX AdvantageQ1 21
3106 N Stone Ave North 24,500 - - Peak Commercial Prop…Q4 20
3610 Stone Ave North 22,417 Gold Star Foods, Inc. Cushman & Wakefield Olive Real Estate GroupQ2 20
170 Talamine Ct North 19,650 - - Olive Real Estate GroupQ1 21
4650 Forge Rd Northwest 19,010 VPX Pharmaceuticals, Inc JLL Olive Real Estate GroupQ2 20
4325 Northpark Dr * North 18,800 Reddy Ice, LLC - Olive Real Estate GroupQ3 20
4949 Geiger Blvd Southeast 18,000 Creative Fabrications - CBREQ4 20
4930-4950 Geiger Blvd Southeast 17,540 United States Army Corps… - RE/MAX AdvantageQ4 20
111 W Las Vegas St Greater CBD 16,705 Artificial Grass Factory Ou… - Thrive Commercial Part…Q3 20
901 Synthes Ave Northwest 16,100 - - Peak Commercial Prop…Q4 20
4650 Forge Rd Northwest 16,000 Johnson Logistics, LLC Trend Commercial R… Olive Real Estate GroupQ3 20
120 S Sahwatch St CBD 13,527 - - Mel R EskanosQ1 21
3075 Janitell Rd Southeast 12,705 Flowers Baking Co Cushman & Wakefield Cushman & WakefieldQ4 20
4930-4940 Northpark Dr North 12,000 - - Milner Properties LLCQ1 21
1490 Valley St Southeast 10,525 - - NAI Highland Commerc…Q1 21
1830 Palmer Park Blvd East 10,368 Quick Colorado Inc, dba B… Unique Properties, Inc. -Q4 20
1410 Ford St * Southeast 10,135 Dynalectric Colorado Colliers International -Q2 20
625 N Murray Blvd * Southeast 10,000 Colorado Auto Storage Peak Commercial Pr… Peak Commercial Prop…Q3 20
2560 Carmel Dr Southeast 10,000 TEN SIX, LLC - Delta Development IncQ2 20
4602-4614 Northpark Dr North 9,486 - - NAI Highland Commerc…Q4 20
3120 Century St North 8,357 - - Peak Commercial Prop…Q1 21
2170-2180 Victor Pl * Southeast 8,256 Waxie Sanitary Supply - Olive Real Estate GroupQ2 20
6150 Stadia Ct Southeast 8,000 Crossfit Decimate Peak Commercial Pr… RE/MAX AdvantageQ2 20
5695 Parachute Cir Southeast 8,000 - - Peak Commercial Prop…Q4 20
109 S Sierra Madre St CBD 8,000 Confidential - Mel R EskanosQ1 21
7363 McClain Pt Southeast 7,700 - - Olive Real Estate GroupQ1 21
920-960 Ford St Southeast 7,532 StateServ Medical - Olive Real Estate GroupQ2 20
4250 Hancock Expy Southeast 7,500 Street Metal Classics Olive Real Estate Gr… RE/MAX Properties, IncQ3 20
4120 Mark Dabling Blvd North 7,500 Aramark Uniform & career… Cushman & Wakefield Newmark Knight FrankQ3 20
5045-5053 N 30th St Northwest 7,200 Fifth Gait Technologies, Inc. - Olive Real Estate GroupQ3 20
5135 Centennial Blvd Northwest 7,000 - - Olive Real Estate GroupQ4 20
2108-2110 Victor Pl Southeast 6,400 - - Peak Commercial Prop…Q1 21
1902 Aerotech Dr Southeast 6,400 Safelite Colorado Springs C… Cushman & WakefieldQ4 20
8170 Sandy Ct Northeast 6,398 B&L Plumbing - Hoff & Leigh Colorado…Q3 20
*Renewal
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Colorado Springs IndustrialLEASING
RentColorado Springs Industrial
MARKET RENT GROWTH (YOY)
MARKET RENT PER SQUARE FEET
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Colorado Springs IndustrialRENT
ConstructionColorado Springs Industrial
DELIVERIES & DEMOLITIONS
SUBMARKET CONSTRUCTION
Average Building Size
RankUnder Constr
Under Construction Inventory
All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %
1 Southeast 6 4,333 722,18594.7% 3 16,2974,104 1
2 North 1 12 12,000100% 1 17,49112 2
3 Northeast 1 5 5,000100% 1 28,1055 3
4 CBD 0 - -- - 12,536- -
5 Greater CBD 0 - -- - 11,640- -
6 Northwest 0 - -- - 33,527- -
7 Southwest 0 - -- - 14,211- -
8 Teller County 0 - -- - 13,227- -
Totals 8 4,350 543,76494.7% 18,5044,121
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Colorado Springs IndustrialCONSTRUCTION
Under Construction PropertiesColorado Springs Industrial
8 4,350,110 14.8% 94.7%Properties Square Feet Percent of Inventory Preleased
UNDER CONSTRUCTION PROPERTIES
UNDER CONSTRUCTION
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Mar 20204222 Integration LoopAmazon Fulfillment Center
4,000,000 4 Sep 2021Trammell Crow CompanyAmazon
1
Mar 20212540 Zeppelin Rd
131,040 1 Oct 2021Scannell PropertiesCity of Colorado Springs - Real E…
2
Mar 20212520 Zeppelin Rd
109,200 1 Oct 2021-City of Colorado Springs - Real E…
3
Mar 2021930 N Newport Rd
41,270 1 Jan 2022--
4
Aug 20205710-5750 E Bijou St
30,000 1 Jun 2021--
5
Jan 20212155 Executive Cir
21,600 1 Aug 2021-Charles J Murphy
6
Oct 202015 Buchanan St
12,000 1 May 2021--
7
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Colorado Springs IndustrialUNDER CONSTRUCTION PROPERTIES
Under Construction PropertiesColorado Springs Industrial
UNDER CONSTRUCTION
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Sep 20204623 Austin Bluffs Pky
5,000 1 May 2021--
8
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Colorado Springs IndustrialUNDER CONSTRUCTION PROPERTIES
SalesColorado Springs Industrial
SALES VOLUME & MARKET SALE PRICE PER SF
MARKET CAP RATE
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Colorado Springs IndustrialSALES
Sales Past 12 MonthsColorado Springs Industrial
109 7.2% $109 5.7%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale
SALE COMPARABLE LOCATIONS
SALE COMPARABLES SUMMARY STATISTICS
Sales Attributes Low Average Median High
Sale Price $18,312 $1,889,531 $1,473,000 $17,000,000
Price/SF $16 $109 $119 $1,183
Cap Rate 5.5% 7.2% 7.2% 8.5%
Time Since Sale in Months 0.1 5.6 5.3 11.6
Property Attributes Low Average Median High
Building SF 594 17,002 10,000 158,210
Ceiling Height 9' 16'8" 16' 35'
Docks 0 1 0 36
Vacancy Rate At Sale 0% 5.7% 0% 96.0%
Year Built 1900 1987 1986 2020
Star Rating 2.0
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Colorado Springs IndustrialSALES PAST 12 MONTHS
Sales Past 12 MonthsColorado Springs Industrial
Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF
Property
Sale Date
Sale
Cap Rate
RECENT SIGNIFICANT SALES
-1 5825 Mark Dabling Blvd1979 151,363 0% $17,000,000 $11210/1/2020 8.5%
-2 2640 Zeppelin Rd2018 99,960 0% $14,600,000 $1465/21/2020 -
-3 3802 N Nevada Ave2020 5,412 0% $6,400,000 $1,18312/9/2020 5.5%
-4 671 Syracuse St2017 158,210 0% $6,020,000 $383/2/2021 -
-5 1480 N Newport Rd2002 53,600 0% $5,316,065 $9912/22/2020 -
-6 4330 Mark Dabling Blvd1978 61,098 0% $4,160,200 $6812/10/2020 -
-7 211 W Cimarron St1986 24,179 0% $3,171,205 $13110/27/2020 -
-8 Krohn's Coverings Inc1993 21,404 0% $2,765,000 $129
702 Clark Pl12/18/2020 -
-9 3116 N Stone Ave1995 12,282 0% $2,600,000 $21211/18/2020 -
-10 H&E Equipment Services1967 16,000 0% $2,600,000 $163
2401 Steel Dr6/17/2020 6.8%
-11 Liberty Sash & Door1990 12,000 0% $2,400,000 $200
6646-6650 Vincent Dr2/17/2021 -
-12 215 W Cimarron St1986 17,756 0% $2,328,795 $13110/27/2020 -
-13 901 Synthes Ave1986 29,854 53.9% $2,200,000 $7411/30/2020 -
-14 7006 Space Village Ave2018 14,000 0% $2,100,000 $1507/1/2020 6.3%
-15 3525 N Cascade Ave1987 21,250 32.9% $2,025,000 $9512/23/2020 -
-16 Colorado Interstate Gas1957 12,000 0% $2,000,000 $167
112-116 W Rio Grande St3/11/2021 -
-17 540-550 E Cimarron St1968 20,000 0% $2,000,000 $1003/9/2021 -
-18 3975 N Academy Blvd1978 25,048 0% $2,000,000 $8012/30/2020 -
-19 4120 Mark Dabling Blvd1973 14,725 0% $1,900,000 $12912/21/2020 -
-20 1440 Paonia St1998 15,000 0% $1,850,663 $1232/6/2021 -
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Colorado Springs IndustrialSALES PAST 12 MONTHS
EconomyColorado Springs Industrial
Initial unemployment claims in Colorado have climbedpast 550,000 since mid-March as the pandemic haswrought economic damage across job sectors,specifically in retail, leisure and hospitality, and energy.But the latest weekly jobless claims suggest the worst isin the rearview mirror.
Fiscal and monetary stimulus was quickly enacted toprovide a bridge for those impacted by the crisis, at leastin the short-term. The Governor's stay-at-home ordersexpired on April 26, although the counties of Denver,Broomfield, Adams, Arapahoe, and Jefferson extendedshelter-in-place orders through May 8.
Employment growth in Colorado Springs outperformedthe national benchmark for a seventh straight year in
2019. And at the end of 19Q4 jobs in the metro areawere growing at nearly twice the rate of the nationalaverage. Professional and Business Services, Educationand Health Services, and Natural Resources, Mining andConstruction were the fastest growing industries for jobs.
Colorado Springs' population growth was about 1.3% in2019, down from the roughly 2% gains from 2016-18.
Unlike Boulder and Denver, affordability has not been alimiting factor for apartment demand in Colorado Springsfor much of the last cycle.
Average asking apartment rents are a sizablediscount—more than 30%—from those in Denver andBoulder, and 20% below the national average.
COLORADO SPRINGS EMPLOYMENT BY INDUSTRY IN THOUSANDS
NAICS Industry Jobs LQ MarketUS USMarketUSMarket
CURRENT JOBS CURRENT GROWTH 10 YR HISTORICAL 5 YR FORECAST
0.42%-0.45%0.60%0.59%-3.13%1.39%0.512Manufacturing
0.56%0.36%0.86%1.80%-2.29%0.06%0.845Trade, Transportation and Utilities
0.69%0.44%0.40%1.63%-2.41%0.54%1.134 Retail Trade
0.74%0.91%1.30%1.59%-0.90%-2.86%1.018Financial Activities
1.00%1.51%-0.34%0.93%-5.21%-4.72%1.252Government
1.06%0.32%2.64%4.95%-2.74%1.20%1.219Natural Resources, Mining and Construction
1.76%2.59%1.61%3.39%-2.96%-1.46%0.841Education and Health Services
1.56%-0.29%1.87%2.25%-3.42%2.00%1.251Professional and Business Services
1.92%0.51%0.22%-1.93%-4.89%-0.14%1.06Information
4.13%2.92%0.45%1.22%-14.96%-8.81%1.234Leisure and Hospitality
1.34%1.58%0.35%1.50%-5.56%-5.22%1.517Other Services
Total Employment 296 1.0 -2.18% -4.55% 1.85% 0.95% 1.16% 1.41%Source: Oxford Economics
LQ = Location Quotient
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Colorado Springs IndustrialECONOMY
EconomyColorado Springs Industrial
Source: Oxford Economics
YEAR OVER YEAR JOB GROWTH
UNEMPLOYMENT RATE (%)
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Colorado Springs IndustrialECONOMY
EconomyColorado Springs Industrial
NET EMPLOYMENT CHANGE (YOY)
MEDIAN HOUSEHOLD INCOME
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Colorado Springs IndustrialECONOMY
EconomyColorado Springs Industrial
POPULATION GROWTH (YOY %)
NET POPULATION CHANGE (YOY)
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Colorado Springs IndustrialECONOMY
EconomyColorado Springs Industrial
DEMOGRAPHIC TRENDS
12 Month ChangeCurrent Level
Metro USMetro USDemographic Category
10 Year Change
Metro US Metro US
5 Year Forecast
Population 330,855,813759,067 1.1% 0.5% 1.5% 0.6% 1.1% 0.5%
Households 123,654,031283,653 1.1% 0.4% 1.4% 0.7% 1.1% 0.5%
Median Household Income $69,269$77,178 4.1% 3.7% 4.0% 3.3% 2.0% 2.2%
Labor Force 160,976,547352,578 -1.5% -1.7% 1.1% 0.5% 1.0% 0.8%
Unemployment 6.7%4.8% 0.5% 2.4% -0.5% -0.2% - -
Source: Oxford Economics
POPULATION GROWTH
Source: Oxford Economics
LABOR FORCE GROWTH INCOME GROWTH
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Colorado Springs IndustrialECONOMY
SubmarketsColorado Springs Industrial
COLORADO SPRINGS SUBMARKETS
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Colorado Springs IndustrialSUBMARKETS
SubmarketsColorado Springs Industrial
SUBMARKET INVENTORY
12 Month Deliveries Under Construction
Bldgs SF (000) Percent Rank
Inventory
Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.
1 CBD 276 0.8% 8 0 - - -22 0 0 0% -
2 Greater CBD 1,688 4.6% 6 0 - - -145 1 2 0.1% 4
3 North 5,457 14.9% 3 1 12 0.2% 2312 1 5 0.1% 3
4 Northeast 3,316 9.1% 4 1 5 0.2% 3118 4 60 1.8% 1
5 Northwest 7,443 20.4% 2 0 - - -222 0 0 0% -
6 Southeast 15,238 41.7% 1 6 4,333 28.4% 1935 4 55 0.4% 2
7 Southwest 2,800 7.7% 5 0 - - -197 0 0 0% -
8 Teller County 291 0.8% 7 0 - - -22 0 0 0% -
SUBMARKET RENT
Growth
Market Rent
Per SFSubmarketNo.
12 Month Market Rent QTD Annualized Market Rent
RankRank GrowthRank
1 CBD -5.4%8 2.0% 6$8.35 2
2 Greater CBD -5.6%6 2.0% 7$9.15 3
3 North -7.6%7 3.2% 3$8.47 7
4 Northeast -5.7%1 3.3% 2$12.05 4
5 Northwest -7.0%4 3.8% 1$9.22 6
6 Southeast -5.7%5 2.4% 5$9.21 5
7 Southwest -11.0%3 3.1% 4$9.58 8
8 Teller County -4.3%2 1.9% 8$9.95 1
SUBMARKET VACANCY & NET ABSORPTION
12 Month Absorption
Rank Construc. Ratio
Vacancy
SF % of InvSF PercentSubmarketNo. Rank
1 CBD 8,000 2.9% -(8,000) -2.9% 53
2 Greater CBD 15,854 0.9% -20,399 1.2% 21
3 North 197,506 3.6% -(51,334) -0.9% 64
4 Northeast 307,927 9.3% -(71,239) -2.1% 76
5 Northwest 747,372 10.0% -(82,380) -1.1% 87
6 Southeast 437,068 2.9% 0.576,161 0.5% 12
7 Southwest 138,835 5.0% -16,703 0.6% 35
8 Teller County - - -0 0% --
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Colorado Springs IndustrialSUBMARKETS
Supply & Demand TrendsColorado Springs Industrial
OVERALL SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2025 1,124,309 2.5% 2.4%1,108,370 1.045,663,467
2024 1,233,553 2.8% 2.7%1,204,059 1.044,539,158
2023 1,341,105 3.2% 3.8%1,643,717 0.843,305,605
2022 1,115,629 2.7% 7.6%3,178,030 0.441,964,500
2021 4,347,964 11.9% 3.6%1,451,347 3.040,848,871
YTD 7,819 0% 0.4%144,344 0.136,508,726
2020 151,697 0.4% 0.2%70,370 2.236,500,907
2019 33,121 0.1% 2.3%839,656 036,349,210
2018 326,873 0.9% 2.5%917,871 0.436,316,089
2017 293,722 0.8% 0.7%264,829 1.135,989,216
2016 65,160 0.2% -0.6%(224,240) -35,695,494
2015 193,648 0.5% -0.1%(28,341) -35,630,334
2014 179,691 0.5% 1.5%515,915 0.335,436,686
2013 (750,703) -2.1% -0.6%(224,130) -35,256,995
2012 348,733 1.0% 1.7%601,960 0.636,007,698
2011 24,035 0.1% 1.2%419,792 0.135,658,965
2010 28,524 0.1% 1.8%649,463 035,634,930
2009 122,641 0.3% -0.9%(323,949) -35,606,406
SPECIALIZED INDUSTRIAL SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2025 422 0% -0.1%(5,868) -10,178,528
2024 1,382 0% -0.1%(5,206) -10,178,106
2023 2,364 0% -0.1%(11,381) -10,176,724
2022 321 0% -0.1%(11,082) -10,174,360
2021 (5,572) -0.1% -0.3%(25,497) -10,174,039
YTD 0 0% -0.2%(22,295) -10,179,611
2020 37,075 0.4% 2.6%262,691 0.110,179,611
2019 0 0% 1.0%104,528 010,142,536
2018 0 0% 1.9%190,063 010,142,536
2017 59,503 0.6% 0.1%15,182 3.910,142,536
2016 0 0% 1.5%148,609 010,083,033
2015 (26,350) -0.3% -2.2%(225,763) -10,083,033
2014 149,023 1.5% 1.8%178,564 0.810,109,383
2013 0 0% 0.6%61,686 09,960,360
2012 0 0% -0.1%(6,317) -9,960,360
2011 0 0% 1.2%123,880 09,960,360
2010 0 0% 1.4%138,778 09,960,360
2009 0 0% 0.1%11,260 09,960,360
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Colorado Springs IndustrialSUPPLY & DEMAND TRENDS
Supply & Demand TrendsColorado Springs Industrial
LOGISTICS SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2025 1,102,123 4.0% 3.9%1,101,874 1.028,331,832
2024 1,207,631 4.6% 4.4%1,194,624 1.027,229,709
2023 1,311,391 5.3% 6.3%1,646,023 0.826,022,078
2022 1,094,717 4.6% 12.9%3,196,820 0.324,710,687
2021 4,356,898 22.6% 5.6%1,323,358 3.323,615,970
YTD 7,819 0% 0.8%150,732 0.119,266,891
2020 114,622 0.6% 0.5%93,485 1.219,259,072
2019 (66,879) -0.3% 2.1%398,561 -19,144,450
2018 326,873 1.7% 2.6%503,559 0.619,211,329
2017 229,278 1.2% -0.3%(63,349) -18,884,456
2016 65,160 0.4% -1.4%(258,206) -18,655,178
2015 219,998 1.2% 1.7%314,724 0.718,590,018
2014 30,668 0.2% 1.3%245,172 0.118,370,020
2013 27,698 0.2% 1.4%262,388 0.118,339,352
2012 145,969 0.8% 2.3%418,583 0.318,311,654
2011 24,035 0.1% 1.3%244,433 0.118,165,685
2010 26,124 0.1% 2.3%415,218 0.118,141,650
2009 107,142 0.6% -0.9%(156,024) -18,115,526
FLEX SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2025 21,764 0.3% 0.2%12,364 1.87,153,107
2024 24,540 0.3% 0.2%14,641 1.77,131,343
2023 27,350 0.4% 0.1%9,075 3.07,106,803
2022 20,591 0.3% -0.1%(7,708) -7,079,453
2021 (3,362) 0% 2.2%153,486 -7,058,862
YTD 0 0% 0.2%15,907 07,062,224
2020 0 0% -4.0%(285,806) -7,062,224
2019 100,000 1.4% 4.8%336,567 0.37,062,224
2018 0 0% 3.2%224,249 06,962,224
2017 4,941 0.1% 4.5%312,996 06,962,224
2016 0 0% -1.6%(114,643) -6,957,283
2015 0 0% -1.7%(117,302) -6,957,283
2014 0 0% 1.3%92,179 06,957,283
2013 (778,401) -10.1% -7.9%(548,204) -6,957,283
2012 202,764 2.7% 2.5%189,694 1.17,735,684
2011 0 0% 0.7%51,479 07,532,920
2010 2,400 0% 1.3%95,467 07,532,920
2009 15,499 0.2% -2.4%(179,185) -7,530,520
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Colorado Springs IndustrialSUPPLY & DEMAND TRENDS
Rent & VacancyColorado Springs Industrial
OVERALL RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2025 151 2.2% 11.7%$10.36 2,569,156 5.6% -0.1%
2024 148 2.5% 9.2%$10.14 2,553,480 5.7% -0.1%
2023 144 2.7% 6.6%$9.89 2,524,137 5.8% -0.9%
2022 140 1.8% 3.8%$9.63 2,827,025 6.7% -5.2%
2021 138 2.0% 2.0%$9.46 4,887,625 12.0% 6.5%
YTD 136 0.9% 0.9%$9.36 1,852,562 5.1% -0.4%
2020 135 2.3% 0%$9.28 1,989,087 5.4% 0.2%
2019 132 4.2% -2.3%$9.07 1,907,760 5.2% -2.2%
2018 127 5.6% -6.2%$8.70 2,714,295 7.5% -1.7%
2017 120 5.3% -11.2%$8.24 3,309,181 9.2% 0%
2016 114 3.9% -15.7%$7.82 3,280,288 9.2% 0.8%
2015 110 3.8% -18.8%$7.53 2,990,888 8.4% 0.6%
2014 106 5.0% -21.8%$7.26 2,768,899 7.8% -1.0%
2013 101 3.4% -25.5%$6.91 3,105,123 8.8% -1.3%
2012 97 1.5% -28.0%$6.68 3,631,696 10.1% -0.8%
2011 96 0.5% -29.1%$6.58 3,884,923 10.9% -1.1%
2010 95 -2.5% -29.5%$6.54 4,280,680 12.0% -1.8%
2009 98 -2.3% -27.7%$6.71 4,901,619 13.8% 1.2%
SPECIALIZED INDUSTRIAL RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2025 157 2.4% 12.9%$10.52 564,092 5.5% 0.1%
2024 153 2.6% 10.3%$10.28 557,073 5.5% 0.1%
2023 149 2.9% 7.5%$10.01 549,752 5.4% 0.1%
2022 145 2.1% 4.5%$9.73 535,291 5.3% 0.1%
2021 142 2.3% 2.3%$9.53 523,190 5.1% 0.2%
YTD 141 1.2% 1.2%$9.42 525,094 5.2% 0.2%
2020 139 2.0% 0%$9.31 502,799 4.9% -2.2%
2019 136 3.6% -1.9%$9.13 728,415 7.2% -1.0%
2018 131 5.0% -5.4%$8.82 832,943 8.2% -1.9%
2017 125 7.1% -9.8%$8.40 1,023,006 10.1% 0.4%
2016 117 3.7% -15.8%$7.84 978,685 9.7% -1.5%
2015 113 3.7% -18.8%$7.56 1,127,294 11.2% 2.0%
2014 109 5.3% -21.7%$7.29 927,881 9.2% -0.4%
2013 103 3.3% -25.7%$6.92 957,422 9.6% -0.6%
2012 100 1.9% -28.0%$6.71 1,019,108 10.2% 0.1%
2011 98 1.0% -29.4%$6.58 1,012,791 10.2% -1.2%
2010 97 -2.2% -30.1%$6.51 1,136,671 11.4% -1.4%
2009 99 -0.7% -28.5%$6.66 1,275,449 12.8% -0.1%
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Colorado Springs IndustrialRENT & VACANCY
Rent & VacancyColorado Springs Industrial
LOGISTICS RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2025 152 2.2% 11.7%$10 1,213,627 4.3% -0.2%
2024 148 2.5% 9.3%$9.79 1,214,546 4.5% -0.2%
2023 145 2.7% 6.7%$9.55 1,202,616 4.6% -1.6%
2022 141 1.7% 3.9%$9.30 1,538,306 6.2% -9.2%
2021 139 2.1% 2.1%$9.14 3,639,574 15.4% 12.3%
YTD 137 1.0% 1.0%$9.05 462,146 2.4% -0.7%
2020 136 2.3% 0%$8.96 605,059 3.1% 0.1%
2019 133 3.9% -2.2%$8.76 583,922 3.1% -2.4%
2018 128 5.8% -5.9%$8.43 1,049,362 5.5% -1.1%
2017 121 4.6% -11.0%$7.97 1,229,936 6.5% 1.5%
2016 116 4.0% -14.9%$7.62 937,309 5.0% 1.7%
2015 111 3.9% -18.2%$7.32 613,943 3.3% -0.6%
2014 107 5.5% -21.3%$7.05 708,669 3.9% -1.2%
2013 101 4.3% -25.4%$6.68 923,173 5.0% -1.3%
2012 97 1.8% -28.4%$6.41 1,157,863 6.3% -1.6%
2011 95 0.5% -29.7%$6.30 1,430,477 7.9% -1.2%
2010 95 -2.5% -30.0%$6.27 1,650,875 9.1% -2.2%
2009 98 -2.5% -28.2%$6.43 2,039,969 11.3% 1.4%
FLEX RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2025 141 1.9% 9.9%$11.31 791,437 11.1% 0.1%
2024 139 2.2% 7.8%$11.10 781,861 11.0% 0.1%
2023 136 2.5% 5.4%$10.86 771,769 10.9% 0.2%
2022 132 1.7% 2.9%$10.60 753,428 10.6% 0.4%
2021 130 1.2% 1.2%$10.42 724,861 10.3% -2.2%
YTD 129 0.4% 0.4%$10.34 865,322 12.3% -0.2%
2020 129 2.9% 0%$10.30 881,229 12.5% 4.0%
2019 125 5.8% -2.8%$10.01 595,423 8.4% -3.5%
2018 118 6.2% -8.1%$9.46 831,990 12.0% -3.2%
2017 111 4.8% -13.5%$8.91 1,056,239 15.2% -4.4%
2016 106 3.8% -17.5%$8.50 1,364,294 19.6% 1.6%
2015 102 3.5% -20.5%$8.18 1,249,651 18.0% 1.7%
2014 99 3.5% -23.2%$7.91 1,132,349 16.3% -1.3%
2013 95 1.4% -25.8%$7.64 1,224,528 17.6% -1.2%
2012 94 0.3% -26.8%$7.54 1,454,725 18.8% -0.3%
2011 94 0.2% -27.0%$7.52 1,441,655 19.1% -0.7%
2010 94 -2.7% -27.2%$7.50 1,493,134 19.8% -1.2%
2009 96 -3.7% -25.2%$7.70 1,586,201 21.1% 2.5%
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Colorado Springs IndustrialRENT & VACANCY
Sale TrendsColorado Springs Industrial
OVERALL SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2025 -- - -- 187- $115.28 8.0%
2024 -- - -- 183- $112.77 8.0%
2023 -- - -- 178- $109.89 8.0%
2022 -- - -- 174- $107.09 8.0%
2021 -- - -- 172- $105.62 8.0%
YTD $21.8M23 0.9% $78.53$1,636,974 1697.1% $103.85 8.0%
2020 $145.5M100 4.5% $115.06$2,064,465 1677.4% $102.99 8.0%
2019 $123.1M117 4.7% $100.67$1,733,420 1596.8% $97.64 8.0%
2018 $139M108 6.3% $76.60$2,058,352 1487.4% $91.20 8.1%
2017 $79.2M89 5.0% $75.78$1,484,093 1428.3% $87.34 8.0%
2016 $111.3M98 5.1% $68.76$1,640,843 1338.4% $81.88 8.1%
2015 $78.6M109 5.9% $64.37$1,018,676 1288.9% $79 8.1%
2014 $81M82 5.7% $41.44$1,136,870 1198.4% $73.29 8.4%
2013 $51.7M99 4.0% $47.99$828,102 1098.2% $67.27 8.7%
2012 $63.9M81 3.2% $81.90$1,338,555 1107.4% $67.59 8.7%
2011 $43.6M56 2.5% $55.46$1,103,410 1009.4% $61.78 9.1%
2010 $42.1M68 4.0% $37.19$867,956 959.0% $58.26 9.5%(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
SPECIALIZED INDUSTRIAL SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2025 -- - -- 179- $104.95 8.1%
2024 -- - -- 175- $102.48 8.1%
2023 -- - -- 170- $99.70 8.1%
2022 -- - -- 165- $96.97 8.1%
2021 -- - -- 162- $95.38 8.1%
YTD $1.6M1 0.1% $124.90$1,600,000 1606.7% $93.67 8.2%
2020 $27.5M15 4.3% $109.47$2,501,506 1588.0% $92.85 8.1%
2019 $32.6M20 4.6% $94.89$2,967,255 1507.3% $87.97 8.2%
2018 $12.2M14 2.4% $66.58$1,527,188 1398.3% $81.90 8.3%
2017 $22.6M19 4.0% $64.19$1,736,753 1366.9% $80.05 8.1%
2016 $23.1M24 5.5% $46.63$1,650,059 1288.5% $75.40 8.2%
2015 $15M16 2.7% $58.91$1,249,667 1258.1% $73.32 8.2%
2014 $14.1M15 3.4% $45.52$1,083,849 116- $68.34 8.4%
2013 $11.8M19 4.0% $48.24$1,176,000 108- $63.44 8.7%
2012 $19.1M11 1.5% $133.56$2,370,723 1117.5% $65.22 8.6%
2011 $14.3M13 2.4% $61.42$1,433,220 101- $59.43 9.1%
2010 $13.6M11 3.7% $39.40$1,505,000 95- $55.89 9.4%(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
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Colorado Springs IndustrialSALE TRENDS
Sale TrendsColorado Springs Industrial
LOGISTICS SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2025 -- - -- 189- $118.19 8.0%
2024 -- - -- 185- $115.62 7.9%
2023 -- - -- 180- $112.67 7.9%
2022 -- - -- 176- $109.81 7.9%
2021 -- - -- 173- $108.38 7.9%
YTD $20.2M15 1.6% $76.29$1,640,055 1707.5% $106.55 8.0%
2020 $103.1M64 5.3% $120.13$2,216,066 1697.3% $105.67 8.0%
2019 $50.5M79 3.9% $91.86$1,029,722 1616.8% $100.48 8.0%
2018 $70.4M75 6.1% $87.58$1,584,488 1507.2% $93.89 8.0%
2017 $35.1M51 4.4% $83.23$1,124,570 1439.2% $89.57 8.0%
2016 $76M62 5.8% $77.23$1,683,681 1348.0% $83.97 8.1%
2015 $47.3M76 8.4% $68.16$924,176 1309.3% $81.10 8.1%
2014 $20.6M47 2.4% $52.74$535,354 1209.0% $75.06 8.4%
2013 $27.2M60 2.9% $61.26$649,856 1108.2% $68.70 8.7%
2012 $39.7M57 4.7% $74.17$1,213,775 1107.4% $68.94 8.7%
2011 $21M30 2.7% $50.13$1,017,484 1019.0% $62.90 9.2%
2010 $18.9M46 2.9% $48.27$614,620 959.0% $59.25 9.5%(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
FLEX SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2025 -- - -- 193- $120.40 7.9%
2024 -- - -- 189- $118.05 7.9%
2023 -- - -- 185- $115.27 7.9%
2022 -- - -- 180- $112.56 7.9%
2021 -- - -- 178- $111.15 7.8%
YTD $07 0.2% -- 175- $109.53 7.9%
2020 $14.9M21 2.7% $96.06$1,082,708 1747.3% $108.62 7.9%
2019 $40M18 7.0% $121.39$3,634,240 1636.6% $102.04 7.9%
2018 $56.3M19 12.6% $68.15$4,149,959 153- $95.58 8.0%
2017 $21.6M19 8.2% $79.21$2,357,502 1457.3% $90.38 7.9%
2016 $12.1M12 2.7% $87.79$1,383,750 1358.9% $84.24 8.1%
2015 $16.3M17 4.1% $59.82$1,164,936 1288.8% $80.17 8.1%
2014 $46.3M20 18.0% $36.91$2,314,214 1197.7% $74.53 8.4%
2013 $12.8M20 6.9% $32.73$1,160,000 109- $67.99 8.7%
2012 $5.1M13 1.9% $50.15$729,355 107- $66.49 8.8%
2011 $8.3M13 2.0% $61.69$905,963 9810.0% $61.39 9.2%
2010 $9.5M11 6.9% $24.21$1,069,625 94- $58.38 9.6%(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
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Colorado Springs IndustrialSALE TRENDS
OUR NETWORK IS YOUR EDGE.All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should carefully verify each item of information contained herein.
PREPARED BY:
RD Trinidad Owner
Hoff & Leigh | 25 N Spruce Street, Suite 330 | Colorado Springs, CO 80905 | 719.630.2277 www.hoffleigh.com/colorado-springs
INDUSTRIAL MARKET REPORT Q1 2021Colorado Springs, CO
INDUSTRIAL LISTINGS
COLORADO SPRINGS AGENTS
6800 E CONSTITUTION AVE$650,000 PER UNIT
SIZE TERMS2,400 SF FOR SALE
2809 & 2817 JANITELL RD$8.50 SF/YR (NNN)
SIZE TERMS6,290 SF FOR LEASE
3415 VAN TEYLINGEN DR$8.50-$10.00 SF/YR (NNN)
SIZE TERMS1,250 -
5,000 SF FOR LEASE
GUY COXBROKER [email protected]
TONY WHITEBROKER [email protected]
CHRIS MYERSBROKER [email protected]
HOLLY TRINIDADMANAGING [email protected]
RICK NELSONBROKER [email protected]
STEVE LEIGHSR BROKER [email protected]
JAYME WILSONBROKER [email protected]
BARBARA LEIGHBROKER [email protected]
BRETT OGDENMANAGING [email protected]